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UPDATE 2-Spain's economy No. 2 quits days after Solbes fired

Published 04/09/2009, 12:30 PM

* Economy Minister David Vegara resigns for personal reasons

* One-time minister candidate quits two days after old boss

* Vegara to stay a month to ease transition

(Adds confirmation, background)

MADRID, April 9 (Reuters) - Spain's second-most important economy ministry official resigned on Thursday, two days after his boss was fired in a Socialist government drive to escape deep recession.

Economy Secretary David Vegara, who had long been tipped as a likely economy minister, handed his resignation to new Economy Minister Elena Salgado shortly after his old boss, Pedro Solbes was dismissed by Prime Minister Jose Luis Rodriguez Zapatero.

"He is leaving for personal reasons. He will stay for a month to aid the transition," Vegara's spokeswoman at the economy ministry said.

Vegara was very close to Solbes, who publicly disagreed with Zapatero when the prime minister said the government might further boost spending in order to combat the economic crisis.

Salgado, who up to this week was minister for public services, is an unknown quantity to financial markets. Spanish media have speculated she is more likely to do Zapatero's bidding than Solbes, who was a former European Commissioner for Economic and Monetary Affairs.

Solbes had said that he wanted to cut back Spain's budget deficit towards the European Union limit of 3 percent of gross domestic product following the 5.8 percent shortfall expected this year due in part to a 70 billion euro ($92.96 billion) fiscal stimulus programme.

News broadcaster CNN+ reported that Treasury Secretary Carlos Ocana, who also reports directly to the economy minister, will remain in his job. (Reporting by Manuel Maria Ruiz and Jason Webb; writing by Ben Harding and Jason Webb; editing by Stephen Nisbet/Victoria Main)

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